This Outback Steakhouse Potato Soup recipe is a creamy, butter-rich soup loaded with potatoes, cheese, and bacon that tastes remarkably close to the chain’s signature version. We sourced this recipe from a former Outback cook and tested it against our regular orders. It’s the real deal. One bowl of this indulgent, cheesy comfort food explains why this soup is one of the most requested copycat recipes out there.
When you first make this Outback Steakhouse potato soup recipe, you’ll never believe it’s as simple as it is. Most people think there’s some secret ingredient or technique and that’s where most copycat recipes come up short.
The recipe we’re using here comes from someone who worked the line at Outback Steakhouse, and it’s dead simple. People assume “cheesy” means dumping in Velveeta or some other fake processed cheese sauce. That’s a shortcut that kills every other attempt. The actual base is a simple roux, just butter and flour. The cheese is real cheddar and Monterey Jack, and the richness comes from heavy cream and bacon, not chemical shortcuts.
Yeah, this soup has calories. A lot of them. But here’s the thing: it’s real food. Real cheese, real cream, real butter. No shortcuts, no factory nonsense. This potato soup isn’t about pretending to be healthy. It’s about using ingredients that are actually worth eating. Simple, real, and satisfying. Make it once, and you’ll understand why this is on Outback’s menu year after year.
Outback Steakhouse Potato Soup
Ingredients
- 4 large Russet Potatoes
- 1 tbsp Oil (Healthy neutral oil like Avocado)
- 1 tsp Kosher Salt
- 1 medium Yellow Onion, finely diced
- 1 cup Butter (Use a quality butter)
- 6 slices Bacon, chopped (Save bacon for garnish and use grease with butter)
- 3/4 cup All Purpose Flour
- 6 cups Chicken Broth
- 1/2 tsp Celery Salt (Adjust to taste)
- 1/2 tsp Black Pepper (Fresh Ground is always best)
- 1/4 tsp Dried Basil
- 1/4 tsp Sugar
- 1 1/2 cups Heavy Cream
- 1 cup Sharp Cheddar, shredded (Approx 1/4 cup will be reserved for the garnish)
- 1 cup Monterey Jack, shredded (Approx 1/4 cup will be reserved for the garnish)
- 6 slices Bacon (Chopped – Saved from roux above)
- 1/2 cup Sour Cream
- 1/4 cup Chives, chopped
Method
- Preheat your oven to 350 degrees and put your rack in the center.
- Rinse and scrub your potatoes. I use a clean scouring pad to clean the entire skin being sure to not scrub completely through the entire skin.
- Use a clean towel to dry the potatoes and then pierce them several times each with a fork.
- Put oil in your hands and rub it all over each potato. and then sprinkle generously with coarse salt.
- Once your oven is at 350, place your potatoes directly on the center rack. Do not use foil or a baking tray.
- Bake at 350 degrees for approximately 1 hour. Pull them when a fork can be easily inserted into the potato.
- While the potatoes bake, you can get started on the soup.
- Set aside to cool.
- Chop the bacon and cook it over a medium to medium low heat. Don't cook it on high.
- Stir frequently until the bacon is slightly crispy but not burnt. This will be your garnish.
- Remove the cooked bacon but save about 2 Tsp grease for your roux. I just pour it all through a metal sieve and then return the reserved grease to the pan and set the bacon aside on a paper towel to drain.
- Add the butter to the pan with the bacon grease and heat under a low to medium heat.
- Add the chopped onion and sauté until translucent. Don't rush this process. Let them cook slowly.
- Add the flour and stir while it cooks for approximately 3 minutes. You want your flour cooked so it doesn't taste raw.
- Slowly add in the chicken broth and water. Continue stirring with a whisk until there aren't any clumps (you'll still see the bits of onion in there).
- Add salt, pepper, basil, and sugar, bringing it to a boil while stirring. You don't want it to burn, so keep stirring.
- Bring the soup down to a simmer and gradually add in the heavy cream. Stir often.
- Chop the potatoes into bite-sized cubes, leaving the skin on. I like them small enough to fit in one bite but big enough to be a good bite when eating the soup.
- Gently put the potatoes into the simmering soup and carefully stir while they come up to temperature. 15 minutes should be enough. You don't want them to dissolve or fall apart.
- Remove the soup from the heat and let it sit for about 3 minutes.
- One handful at a time, add in 1 1/2 cups of the cheddar Monterey jack cheese blend. Stir in each handful until it's completely incorporated before adding the next one.
- Ladle the soup into individual bowls being sure to get the right amount of potatoes.
- Garnish each bowl with a small handful of cheese, crumbled bacon, a small dollop of sour cream, and top with the chopped fresh chives.
- Serve and enjoy!
Pro Tips for my Outback Steakhouse Potato Soup Recipe
Make Real Baked Potatoes
Don’t wrap them in foil or you’ll steam them instead of baking them. Poke them with a fork to let them breathe, coat lightly with a real oil, and then bake them directly on the rack. You want that real baked potato texture, not mushy. And don’t over-bake them either. You want them just shy of fully cooked because they’ll finish cooking when they hit the hot soup.
Render the Bacon Low and Slow
This is where some people mess up. Rush it and you’ll burn the bacon, and the fat will taste like it. Take your time. Let it render slowly until it’s crispy. That rendered fat is half your roux, so it needs to taste perfect.
Cook Your Roux Like a Pro
After you’ve got your bacon crispy pull it from the fat and set it aside, Add your onions to bacon fat and let them soften. Then you’ll add real butter and flour. Cook that flour until the raw taste is gone, but don’t burn it. You’ll taste the difference if you skip this step. Most people either leave it raw or burn it. Neither works.
Don’t Miss The Bacon Goodness on the Pan
All those little bits of bacon stuck to the bottom? Scrape them up when you’re making your roux. That’s flavor gold. It’s what takes your roux from good to great.
Let the Potatoes Finish in the Soup
As I mentioned above, don’t fully bake them. When they go into the hot soup, they’ll finish cooking and stay creamy instead of turning to mush. It makes a noticeable difference in texture.
Frequently Asked Questions
How to Store and Reheat Your Potato Soup
Outback potato soup is just as delicious the next day and may even taste better after the flavors have time to come together. It will also be a bit thicker as the potatoes, butter, and cheese come together.
Refrigerator
Allow the soup to cool at room temperature before transferring it to an airtight container. You can safely store this in the refrigerator for up to 4 days
Freezer
Because this soup contains heavy cream and cheese, freezing can cause the texture to become slightly grainy once you thaw it out. While it can be frozen for up to 2 months, I recommend you enjoy it from the refrigerator whenever possible for the best flavor and texture.
Reheating
Reheat the soup gently over medium-low heat on the stovetop, stirring occasionally until warmed to your desired temperature. Do not bring this to a boil or stir too frequently as that can sauce the potatoes to fall apart and the dairy to separate.
If the soup is too thick after sitting in the refrigerator, just stir in a splash of chicken broth, milk, or heavy cream until it reaches your desired consistency.
You can reheat small individual portions in the microwave but heat it in 30 second intervals, with a gently stir between each one until it’s hot.
